13.10.03China Gives Nod to Its Carrier's Use of Foreign Flag Ships

China's Ministry of Transport has allowed Chinese shipping lines to use foreign flag vessels for transhipment of export/import containers in coastal trade between Shanghai and other open ports in China. Under China's cabotage rules, foreign flag ships have been banned from transporting domestic cargo.

The move is allegedly an experimental measure to ease the existing cabotage restrictions in a bid to promote the China (Shanghai) Pilot Free Trade Zone which was official opened on Sunday September 29 and boost Shanghai’s transhipment volumes and domestic lines.

The 28.78 square-kilometer free zone covers four existing bonded zones - Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Comprehensive Free Trade Zone.